State lawmakers look to Virginia for road fix ideas

Jan. 29, 2013

Written by

Staff writer

COLUMBIA — Virginia’s plan for funding needed road repairs is attracting interest from some South Carolina lawmakers searching for alternative ways to pay for infrastructure improvements.

The plan by Gov. Bob McDonnell of Virginia would swap the state’s gas tax for a .8 cent increase in the 5 percent sales tax. It would also raise vehicle registration fees by $15, create a $100 surcharge for those who own alternative energy cars such as electric vehicles and keep the tax on diesel fuel.

The plan would raise an estimated $3.1 billion over five years, almost the same amount a coalition of business groups say is needed in South Carolina for road needs here.

State lawmakers say they are interested in the plan because it is using some new approaches and an increase in South Carolina’s gas tax is not politically feasible.

“We are looking for revenue streams to divert toward the Department of Transportation to try and build up the amount of money needed to repair the roads,” Rep. Tommy Stringer of Greenville, the chairman of the House GOP Caucus tax study committee, told GreenvilleOnline.com. “We are actively looking at ideas like the Virginia plan. We’re not officially looking at it yet but some of us are talking about it.”

South Carolina’s roads and bridges need an estimated $29 billion over the next 20 years, a Department of Transportation committee has projected.

While the condition of South Carolina’s roads in many cases is between fair to poor, economic development officials say improvements also are needed in time for the completion of $300 million of work to the state’s port in Charleston.

Otis Rawl, president and CEO of the S.C. Chamber of Commerce, said the dredging of the port will place more importance on relieving congestion on Interstate 26 by 2017.

A coalition of state business organizations want the state to spend $6 billion over 10 years on road and bridge improvements.

Virginia’s gas tax is similar to South Carolina’s, 17.5 cents to 16.8 cents. Both states last raised their gas tax in 1987.

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Virginia has 97,000 miles of state-maintained roads, more than twice as many as South Carolina’s.

Some lawmakers say the Virginia plan is interesting but no plan labeled as a tax increase will pass the General Assembly.

Plans to fund South Carolina’s transportation needs so far include a proposal by some senators and House Speaker Bobby Harrell to redirect all the revenue from the sales tax on vehicles – about $100 million — to DOT; Senate Transportation Committee Chairman Larry Grooms proposal to use 5 percent of the General Fund in years in which there is positive revenue growth; and redirecting all vehicle-related fees to DOT.

The coalition has proposed a combination of methods, including setting aside 20 percent of new General Fund money, use of the state’s Capital Reserve Fund and any vehicle-related fees.

Bill Ross, who heads the S.C. Alliance to Fix Our Roads, said some states already use their sales tax to fund transportation.

“I think our state is going to have to look at all the options and that may be one of them,” he said of Virginia’s plan.